On The Causes And Countermeasures Of Zhonghong Shares' Debt Default

Since China began issuing corporate bonds in 1984,China's bond market has developed rapidly,which has played an important role in expanding financing channels and promoting the development of the national economy.However,if a company is over-indebted,blindly adding leverage,and its own cash flow cannot repay its debts,it will create a risk of debt default,which will seriously threaten the survival and development of the company.In recent years,debt default has occurred frequently,and the scope has spread from private enterprises to state-owned enterprises,from the traditional energy industry to the whole industry.There are two main reasons for the debt default of the enterprise: on the one hand,it is affected by the downturn of the macro economy,and the debt-deficit is caused by the high-debt enterprises with large policy impact and strong cyclicality;on the other hand,the enterprises' debt default is due to the deteriorating of business operation,declining of the profitability and further increases in financing costs.As one of the pillar industries of China's national economy,asset-liability ratio of the real estate industry has always been at a relatively high level.The debt default in the real estate industry is special and typical.This paper takes case analysis as the research method and the real estate enterprise debt default the main line.Through the analysis of Zhonghong shares,it identifies the causes of debt default of listed real estate enterprises,proposes corresponding countermeasures to prevent debt default,and draws enlightenment for real estate industry and capital markets from it.This paper is divided into five parts: The first part mainly introduces the research background and significance of this paper,summarizes the domestic and international theoretical research results of financial risk and debt default,gives the definition of corresponding concepts,and the research contents and methods of this paper;the second part is the specific interpretation of the case,namely the company profile of Zhonghong shares,the situation of corporate liabilities,and the retrospect of the entire process of debt default;the third part is the cause analysis of Zhonghong shares' debt default,which includes micro-level analysis of the enterprise itself,meso-level analysis of the industry,and macro-level analysis of the national policy;the fourth part is the countermeasures of Zhonghong's debt default and its enlightenment for the real estate industry and the bond market;Finally,the fifth part is the conclusion,mainly the research conclusions and limitations of this paper,which is a summary and reflection on the overall context of this paper.